Is Your Bank Account Susceptible to Prying Eyes? The Overlooked Risks of Making Business Purchases on Credit Cards

By February 19, 2016Small Business

We all fear the prying eyes peeking into our bank accounts. And with so much of our personal information electronically accessible we have good reason to be concerned.

So, we constantly change our passwords and insure your online banking is secure.

But, you may find yourself thinking what is it that I’m overlooking? What information am I hanging out to dry?

The threat of credit card theft

But, with your business credit card is safely in your wallet, when’s the last time you sat up and paid attention to its security?

The truth is that there are many security risks of using plastic, and making a big business purchase with a credit card stamps a big bulls-eye on your back in the eyes of people who commit credit fraud.

Here are a few of the hidden risks of making your payments on plastic

1. Scanners

Without you even realizing it, your credit card information can be copied with a scanner. Scanning systems can be embedded within an EDC (or credit card swipe machine) granting full access to all of your credit card information, from your card number right down to the magnetic chip.

2. Keeping information secure

You may have had to convince your parents years ago that yes, you can pay with credit card over the phone or internet and no your bank account won’t be emptied as a result. But in truth, It can be incredibly difficult to ensure that the person on the other end of the line is who they say they are. 

3.Proving fraudulent purchases

Even after all is said and done, you have to prove to your credit card supplier that the purchases were fraudulent. This process usually takes a minimum of ten days, largely impacting your cash flow cycle and ability to make your business payments on time.

A more secure option

Understanding any threats associated with credit cards can help you keep your banking information safely away from prying eyes. To further avoid the risk of giving away information many businesses will move away from financing their business purchases with credit cards in favor of alternative finance.